Nigeria’s Tax Reform: Committee Proposes Overhaul to Boost Economic Growth as New Tax Reforms Aim to Target the Rich
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, recently announced that the committee has developed a new tax regulation, which is set to amend existing laws. Speaking at a stakeholders’ forum organized by the Harvard Business School Association of Nigeria in Lagos, Oyedele revealed that the regulation is part of an emergency bill awaiting approval by the country’s lawmakers.
“We have drafted a new tax regulation. The only reason why it hasn’t been published is that some of the things we included will amend the existing laws, so we put the amendment in the emergency bill waiting for the lawmakers to pass, so we can then issue the regulation,” he explained.
The primary objective of these tax reforms is to provide a comprehensive framework that will boost economic growth and alleviate the burden on businesses.
Oyedele emphasized that Nigeria has the potential to earn up to N10 trillion annually through efficient management of its non-oil assets. He highlighted that the country’s non-oil assets, estimated to be between N80 trillion and N100 trillion, have not received adequate attention and are often mismanaged.
“We found out that other than oil when you are talking about assets. Some estimates, although still working on it, show something in the region of N80 to N100tn scattered all over the place. We haven’t shown any care at all as a country about those assets such that they have been mismanaged. We also found an asset worth trillions of naira, and someone even dared to register a company with the Corporate Affairs Commission to hold those assets, and the shareholders are still in this same Nigeria,” Oyedele stated.
Improving asset management and selling underperforming assets could potentially generate liquidity and stimulate economic growth, according to Oyedele.
Oyedele also emphasized the need to streamline the number of taxes in the country from about 62 to less than 10, citing the heavy burden imposed on Nigerian businesses by the current tax structure. Additionally, the Federal Government aims to tax wealthy Nigerians to achieve its 18% Tax-GDP ratio revenue target.
The committee plans to leverage technology to expand the tax base and increase revenue. Oyedele clarified that the Presidential Tax Committee’s goal is not to increase taxes but to harmonize revenue collection and reduce the overall tax burden.
Source: Nairametrics
